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TurkGBs Hold onto Gains; 5Y CDS Holds Just Shy of 550

TURKEY
  • Local & USD rates remain Unch this morning, having continued to diverge in yesterday’s session. TurkGBs held onto gains to close -14-20bp bull flatter in 5-10Y yields, while USD bonds slipped marginally into the red across the curve.
  • Credit default swaps trimmed Friday’s gains slightly, but remain within the near-term uptrend established on 27 Jan.
  • 550 resistance stands as the next major hurdle to the topside, while support seems to be forming around 520.
  • The tightening external backdrop and deteriorating inflation outlook in 1H22 may keep the 5Y CDS biased higher in 2022 as policy headwinds increase and the CBRT leans more heavily on its reserves.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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